The training budget (or L&D budget) can be a contentious topic within businesses. Its a budget that is often overlooked, under funded and is immediately cut during times of trouble.
The cliche and well-documented conversation:
CFO: “what happens if we train employees and they leave?”
CEO: “What happens if we don’t and they stay?”
I have actually had someone say the top line to me a few times now and it still amazes me.
However, from chatting to clients and my PLN within L&D it appears that companies are more aware of the need to develop their staff and are willing to invest.
How to make the most of your budget?
Plan for changes – Plan for the worst and hope for the best. So, allow some flex in your plans for those ad-hoc requests from the business, changes to projects and business strategy.
Prioritise – I know you know this. What is going to have the greatest positive impact on the business?
Be creative – what would and could you do if you had zero budget. How would your employees learn? How could you get knowledge shared around the company?
Use internal resources – your company will have people with huge amounts of knowledge, so before you look to use an external provider, get your employees involved in sharing their knowledge.
Use learning technology wisely – its easier to create content and share to your employee population. Let employees record videos, audio, podcasts. But don’t see technology as the easy win – you still need to engage employees.
Be efficient with time – if using external providers to run workshops then one way is to reduce the length and thus reduce what you are paying. But not at the expense of the learning outcomes. Compliment it with elearning. content or knowledge sharing sessions internally.
Funding – The Apprenticeship Levy is well documented, are you making the most of this? What other funding exists for organisations like yours?
Source wisely – When bringing in external providers it pays to invest your time in choosing the right options. Shop around, get referrals, get pricing benchmark BUT always focus on quality. Then you can negotiate on price – what can you offer to the provider in exchange for better prices. Warning – buy cheap pay twice.
Training Credits – If you have high volumes of training in a certain area e.g. IT, compliance, then there are benefits of buying credits with a single provider, or service provider, to use over a fixed period and achieve greater savings. Also very handy if you have budget left at the end of the year.
Measure & evaluate – So important. Establish the impact of any training and learning. What works well, what can be improved, what needs to be removed. What is the return on investment or expectations? Spend time analysing, talking and reviewing to help you with future projects and programmes.
If you’ve got anything to add to the above list or examples of ways you’ve made the budgets go further do let me know.
And if you are struggling with managing or using your budget, or want to use it more effectively but not sure how then get in touch and I’ll be happy to chat. Call me on 0845 519 7408 or email blake.henegan@optimuslearningservices.com
